North Carolina Down Payment Assistance Systems

Payments Gateway - The North Carolina Housing Finance Agency has two excellent programs for first-time Home Buyers. These systems would be the Mortgage Credit Certificate along with the Down Payment Assistance System.

You also buy a property between December 1, 2009 and January 1, 2009 and should you meet the requirements for one of the plans, you might also qualify for the $8,000 tax credit just enacted into law.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a house in the past three years. Here is the same qualifying definition for the $8,000 tax credit.

The MCC takes this a step farther. An MCC “reduces your tax liability based on a percentage of the mortgage interest which you pay.

If you are eligible for the MCC, it is possible to claim 20% of the interest you pay as a credit on your own federal income taxes on your own mortgage. You can save as much as $2,000 on your taxes.

Should you qualify for the MCC you may find a way to join this. This could reduce the tax liability of a buyer's .

Household income means the “gross income of the mortgagor and any man expected to live in the residence who is 18 years of age or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Home $220,000 Existing House $210,000

The purchaser just has to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This program has more rigorous income limits than the MCC plan outlined above. Like the MCC program, it could be used together with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, can not be applied along with all the MCC. This is an either or scenario.

House price limits Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Home $210,000